Quota is based on the number of PNMs divided by the number of chapters and isn't a reflection of the competitiveness of a greek system. (With 2 exceptions, and Texas is not one of them.) Texas is extremely competitive, but that is due to the number of PNMs who want the same "top" chapters.
You are correct - it has to do with PNM - which compared to the size of the school is fairly small.
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